Author: Kate Forrest

Kate is a criminal defense lawyer with an impressive record of “not guilty” verdicts and dismissals in serious criminal cases.

Qualified Immunity Ends in New Mexico

On April 7, 2021, Governor Michelle Lujan Grisham signed the New Mexico Civil Rights Act into law, effectively ending the doctrine of qualified immunity for all state and local public officials there. The law had bipartisan support and the backing of several organizations, including the Innocence Project. This makes New Mexico the first U.S. jurisdiction to end qualified immunity for civil rights cases entirely—though Colorado ended the applicability of the doctrine to law enforcement in June of 2020, and Connecticut and New York City have also each passed recent legislation intended to limit its use by the police.

The New Mexico law creates a new type of state legal claim for people whose rights under the state constitution have been violated by either government workers or the government itself. The law limits the possible payout for these claims to no more than $2 million per occurrence, but it also allows courts to award additional attorney’s fees when they see fit. The most groundbreaking part of the new law, however, is that it specifically prevents any government worker who is sued in this way from avoiding the lawsuit by claiming qualified immunity.

Qualified immunity is a legal principle that protects officials employed by a government entity from being sued as individuals for violating the rights of members of the public. First formalized in the U.S. Supreme Court case Pierson v. Ray, qualified immunity makes government workers “immune” from any such lawsuits unless the actions they took violated a legal right that was objectively “clearly established” at the time. In practice, this standard prevents a large number of lawsuits against public officials that might otherwise be brought for things like excessive use of force or illegal searches by the police—because it is very difficult for a person to show that a right was “clearly established.”

The doctrine of qualified immunity was created by the courts, but legislation like the New Mexico law can easily change or eliminate it. A large proportion of the cases where qualified immunity is raised as a defense are filed under federal law. In 1961, the Supreme Court held that 42 USC § 1983 makes it expressly possible to file a lawsuit against people who work for state or local governments when they violated a person’s rights under the U.S. Constitution or other federal laws. Ten years later, the Court held in Bivens v. Six Unknown Federal Narcotics Agents that federal officials could also be sued for such violations.

These so-called § 1983 lawsuits and Bivens claims are often foreclosed by qualified immunity, but that could change if Congress chooses to enact laws like the New Mexico Civil Rights Act. In 2021 alone, there have been four resolutions presented to the House of Representatives and one presented to the Senate that would end or dramatically limit the doctrine. Of these, the George Floyd Justice in Policing Act of 2021 has already passed in the House and was received in the Senate on March 9, 2021.

FCPA Investigation

Increased FCPA Enforcement Expected under Biden and AG Garland

The recent trend towards increasing enforcement of anti-bribery provisions of the FCPA is expected to continue or even accelerate under the new Biden administration.

The 1977 Foreign Corrupt Practices Act (or “FCPA”) prohibits people and companies in the U.S. from paying bribes to foreign officials to support their business interests. The various provisions of the FCPA are enforced civilly by the Securities and Exchange Commission (SEC) and criminally by a special unit within the Fraud Division of the Department of Justice (DOJ). For the first two decades of its existence, enforcement actions under the FCPA were vanishingly rare, but in recent years they have become substantially more common, with both 2016 and 2019 seeing over 50 such actions filed. In addition to being more frequent, these actions have also become more costly for the targeted entities, with the average amount of resulting sanctions rising to an all-time-high of $447,171,008 in 2020.

This pattern is likely to persist under the new presidential administration. On the campaign trail, then-candidate Biden identified global corruption as a “core national security interest” and pledged reform of illicit international trade practices. Since his assumption of the presidency, Biden’s nominations for key leadership roles at the DOJ and SEC have reflected a continuing commitment to that goal.

Heading up the DOJ will be recently-confirmed Attorney General Merrick Garland, who spent many years early in his career as an Assistant U.S. Attorney prosecuting fraud and corruption cases. Recent changes in the FCPA unit itself also seem to signal its increase in priority to the DOJ. The anti-bribery unit now comprises a record 39 prosecutors, including at least one high-profile new-hire with corporate monitoring experience.

To lead the SEC, President Biden has tapped Gary Gensler, the former Obama-era head of the Commodity Futures Trading Commission (CFTC). Gensler is expected to bring an aggressive approach towards enforcement, and his prior connection with the CFTC may also be an indicator of increasing cooperation between the two agencies. The CFTC completed its first foreign corruption case just last year with the December settlement agreement with Vitol, Inc, and the agency has publicly announced its intention to continue focusing on such parallel enforcement actions with the DOJ and the SEC.

These developments all suggest that the Biden administration has every intention of continuing to increase FCPA enforcement across the various regulatory agencies. If you or someone you know is involved in an FCPA investigation, contact our experienced team of federal criminal defense attorneys for assistance.

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